On July 1, 2023, Jazzy Company purchased as a long-term investment 50,000 shares of Asia Corporation ordinary shares for P80 per share. This purchase represents a 2% interest in Asia. On August 1, 2023, Asia Corporation declared its annual dividend on its ordinary shares of P10 per share payable on September 10 to shareholders of record at August 31, 2023. A retirement of an issue of Jazzy’s serial bonds payable on August 25, 2023 required additional working capital and Jazzy sold all 50,000 shares of Asia’s stock for P5,200,000 at the same date including the accrued dividend. For the year ended December 31, 2023, the gain on disposal to be reported by Jazzy on this transaction should be
On July 1, 2023, Jazzy Company purchased as a long-term investment 50,000 shares of Asia Corporation ordinary shares for P80 per share. This purchase represents a 2% interest in Asia. On August 1, 2023, Asia Corporation declared its annual dividend on its ordinary shares of P10 per share payable on September 10 to shareholders of record at August 31, 2023. A retirement of an issue of Jazzy’s serial bonds payable on August 25, 2023 required additional working capital and Jazzy sold all 50,000 shares of Asia’s stock for P5,200,000 at the same date including the accrued dividend. For the year ended December 31, 2023, the gain on disposal to be reported by Jazzy on this transaction should be
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
ChapterA2: Investments
Section: Chapter Questions
Problem 24E
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On July 1, 2023, Jazzy Company purchased as a long-term investment 50,000 shares of Asia Corporation ordinary shares for P80 per share. This purchase represents a 2% interest in Asia. On August 1, 2023, Asia Corporation declared its annual dividend on its ordinary shares of P10 per share payable on September 10 to shareholders of record at August 31, 2023. A retirement of an issue of Jazzy’s serial bonds payable on August 25, 2023 required additional
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